GAZ-SYSTEM and Amber Grid Made Positive Investment Decision Regarding Construction of Gas Interconnector Between Poland and Lithuania

The construction of the interconnector between Poland and Lithuania was once again included in the European list of gas sector projects of common interest (PCIs), published on 24 November 2017 by the European Commission. The preparatory project work has been granted the highest possible amount of EU financial aid (under the CEF) admissible for studies, i.e. 50 percent. Out of the total amount of over EUR 10 million, EUR 2.5 million went to Amber Grid, while EUR 7.6 million was allocated to GAZ-SYSTEM. The project’s construction work, however, were granted up to EUR 266.4 million of EU aid funds under the Connecting Europe Facility (CEF). Out of the total amount of funding, Amber Grid was allocated nearly EUR 58 million, while GAZ-SYSTEM was allocated over EUR 208 million. In accordance with the ACER’s decision of 11 August 2014 on the cross-border project cost allocation, in addition to the EU financial support, the GIPL construction project, including a part of the GIPL infrastructure costs in the territory of Poland, will be co-financed by Lithuania, Latvia, and Estonia (TSOs – transmission network operators). A separate agreement regulating the practical implementation of the above decision between the TSOs of these countries and GAZ-SYSTEM was signed on 11 May 2018. The scope of the investment includes the construction of 357 km of the DN 700 MOP 8.4 MPa gas pipeline on the Polish side and 165 km of DN 700 MOP 5.4 MPa gas pipeline on the Lithuanian side together with the accompanying infrastructure. The Contracting Parties have undertaken to commission both GIPL parts by 31 December 2021. The investment is currently at the design stage.
